Jonathan Rose Companies, a prominent real estate planning, development, and investment firm, is experiencing an uptick in interest from family offices and foundations eager to invest in housing-related projects. Led by founder and CEO Jonathan Rose, the company remains focused on addressing the pressing need for affordable housing in the United States, where an estimated 10 million units are currently lacking. While recent legislative changes have some developers bullish again, changes that will make investing in affordable housing a more attractive proposition, these dark clouds still loom large.
In a touch that could prove influential, recent legislation raised the 9% credit allocation to states permanently by 12%. This adjustment is included in a larger tax and spending measure. It is intended to help developers like Rose, who are committed to producing more affordable housing. That’s a huge shot in the arm for production of new affordable housing. In reality, the U.S. lacks nearly 10 million units. This doesn’t make up the entire 10 million unit shortfall, but it’ll go a long way,” said Rose.
Even as these changes for the better take hold in legislation, challenges are still ahead. Rose pointed out that the entire real estate industry is facing the pinch of increased interest rates and construction costs. He noted that requirements made by building departments and a host of other frictions often put up roadblocks to the development process. “This is a tough time, I think. Rose went on to say that with higher interest rates and all construction costs rising, the industry is under stress across the board. On top of that, building department requirements and other market frictions are further complicating an already complex process to an insurmountable degree.
Rising costs and more legal, regulatory, and financial burdens added in on top exacerbate this housing crisis. Thanks to the NIMBYism (Not In My Backyard) currently alive and well across America, local residents routinely oppose the construction of affordable housing in their communities. One major pushback is community concern, which may be rooted in a historic perception of affordable housing as ugly or poorly conceived. As Rose explained, one of the reasons communities are concerned about affordable housing is the legacy of poorly built, poorly maintained older developments. Most of them were built in the ’60s, ’70s, and early ’80s. They were usually cheap and ugly, and she wouldn’t want them blighting her neighborhood, either.
Jonathan Rose Companies is not afraid to take on these challenges. They are committed to developing higher-quality, better-designed, and greener properties that achieve community goals while delivering long-term operating and capital cost savings to owners. On this last point lamented Perkins in a recent interview, “We’re all deeply committed to building beautiful buildings.”
David Dworkin, president of the National Housing Conference, noted that the recent legislative changes incorporate essential elements of the Affordable Housing Credit Improvement Act. “This legislation represents a historic expansion of the credit,” Dworkin argued. Specifically, it has elements that urban, rural, and tribal communities need to increase the supply of rental homes. The second point he highlighted was that these changes are projected to produce or preserve over a million affordable rental homes. This new program will cover years 2026–2035.
As interest in affordable housing investments grows, Jonathan Rose sees a burgeoning opportunity for investors willing to navigate the complexities of this market. To Cohn, the recent spate of legislative support is promising indeed. Together, let’s address today’s pressing crisis and the ongoing demand for affordable housing that solutions like THESE flow from.